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Ask Jane Applegate
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December 30, 1999: 4:12 p.m. ET
On the fast track for venture funding; looking for jewelry import data
By Jane Applegate
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NEW YORK (CNNfn) - Here are answers to your questions for CNNfn small-business columnist Jane Applegate:
Dear Jane: I have what I consider to be a breakthrough idea for a Web application. I have assembled a small, qualified team and have written an executive summary for the company. Is the summary enough to show potential investors, or should we slave over a business plan for the next six months? Time is life and death in the high tech industry.
With venture capitalists pouring billions of dollars into new ventures this year, many aren’t waiting for full-blown business plans before making a funding commitment.
You will need financial projections, a competitive analysis and a detailed description of your management team before anyone will give you a term sheet.
Based on a seven-page summary, we are actually in discussion with a venture group that is considering an investment in our Web company. But, before we see any cash, we’ll still need to pull together a detailed financial statement and budget outlining how we would spend the money if they invested in us.
A venture capitalist I know well told me the days of 100-page business plans are over. You don’t need to write a book about your business, but you do need to provide enough information for someone to get a clear picture of where you are and where you are going. VC’s want to make a big return on their money and get out within a few years. They want to know that your business is positioned for growth -- really fast growth.
It shouldn’t take six months to write a plan, anyway. Try a template-oriented software program. The fill-in-the-blank software is very easy to use as it guides you through all the steps.
Try to get folks to sign a nondisclosure agreement before you show them your great idea. It won’t prevent unethical people from stealing your idea, but it may make them think twice about copying or adapting it.
Dear Jane: I am launching a business to import jewelry and need statistics on a country-by-country basis for the marketing section of the plan. Where can I find this information?
Try contacting the U.S. Commerce Department and the U.S. Export-Import bank. The Commerce Department has experienced commercial officers assigned to specific countries and regions of the world. Their job is to keep track of business opportunities for American business owners wanting to do business overseas. The department’s Web address is: www.doc.gov.
The Eximbank, as it is called, is an independent federal government agency that provides a variety of funding options and support services for businesses. You can call their hotline at (800) 565-3946, press 1 to listen to a menu of services. The Web site is: www.exim.gov.
You also might try getting information from STAT/USA, which is an online service featuring up-to-date business and economic information from 50 government agencies. The Web site is www.stat-usa.gov. There is a fee for the information ordered.
Another great Web site is www.exporthotline.com. The site has all kinds of global trade information and services for entrepreneurs.
Finally, the U.S. Customs Service is responsible for keeping track of all overseas goods shipped into the United States. Call the public information office at the nearest location to see what information is available.
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